Bullion metal prices ended higher on Monday, 18 March 2013. Prices ended higher despite a strong dollar. A flare-up in the European Union debt crisis again has traders and investors seeking out safer assets, including gold.
Gold for April delivery ended higher by $12 or 0.8% at $1,604.6 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
March silver ended higher by 2 cents (0.1%) at $28.87 an ounce on Monday.
There was a new twist to the European Union sovereign debt crisis during the weekend. Cyprus officials are considering taxing savings accounts in their domestic banks as a part of an overall banking bailout plan tentatively agreed upon with the European Central Bank and the International Monetary Fund over the weekend. That prompted fears other financially troubled nations in the EU could do the same at some point.
European and Asian stock markets, the Euro currency and U.S. stock indexes were hit hard to the downside on the Cyprus developments. However, the U.S. stock market did recover from its strong early selling pressure as the day progressed on Monday. Italian and Spanish bond yields rose on Monday, which is a further sign of increasing stress in the European Union.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.25% on Monday.
HSBC on Monday kept their bullish view on gold but still cut their price forecasts on the metal for this year and next. They said they expect prices to be supported by ongoing accommodative monetary policies, with geopolitical tensions and escalating 'currency wars' likely to provide an additional lift. But they reduced their gold-price forecasts in light of the weak prices seen earlier this year. HSBC lowered its 2013 average gold-price forecast to $1,700 from $1,760 and the 2014 forecast to $1,720 from $1,775.
Among economic data expected at Wall Street on Monday, the March NAHB Housing Market Index registered a reading of 44, which was lower from the prior month's reading of 46. Today's reading fell also short of consensus, which called for a reading of 48.
At the MCX, gold prices for April delivery closed higher by Rs 172 (0.6%) at Rs 29,547 per ten grams. Prices rose to a high of Rs 29,644 per 10 grams and fell to a low of Rs 29,440 per 10 grams during the day's trading.
At the MCX, silver prices for May delivery closed higher by Rs 127 (0.23%) at Rs 54,321/Kg. Prices opened at Rs 54,250/kg and rose to a high of Rs 54,555/Kg during the day's trading.
Powered by Capital Market - Live News
